Trading Update - H1 FY2026
Seeing Machines Limited reported unaudited H1 FY2026 revenue of US$23.4m - US$24.0m, a decrease from the prior year, attributed to lower non-recurring engineering activity and the absence of prior exclusivity license revenue, though Annualised Recurring Revenue increased to US$14.0m. Operating expenses were reduced, and the adjusted EBITDA loss is expected to be between US$13.1m and US$13.7m. The company's cash balance stood at US$3.4m as of December 31, 2025, but was bolstered by a post-period royalty payment of approximately US$14.1m. Automotive production volumes grew by 62% to 1,088,530 units, with royalty revenue up 43% to US$9.0m, and cars on the road using their technology reached over 4.8 million units. The company anticipates positive Adjusted EBITDA in Q3 and the second half of FY2026, driven by the upcoming EU General Safety Regulation deadline.
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Seeing Machines Limited (AIM: SEE), the advanced computer vision technology company that designs AI-powered operator monitoring systems to improve transport safety, publishes a trading update for the six months to 31 December 2025 ("H1 FY2026"), based on unaudited numbers.
The Company is entering a key phase as it prepares for the 7 July 2026 EU General Safety Regulation (GSR) deadline, which mandates camera-based Driver Monitoring System ("DMS") technology for all newly registered vehicles.
KEY FINANCIAL HIGHLIGHTS:
Reported revenue for H1 FY2026 is expected to be in the range US$23.4m - US$24.0m (H1 FY2025: US$25.3m).The decrease reflects lower non‑recurring engineering ("NRE") activity as major automotive programs mature and transition into production phases, as well as the absence of license revenue associated with prior exclusivity arrangements
Annualised Recurring Revenue ("ARR") increased to US$14.0m (30 June 2025: US$13.5m), supported by growing Guardian connections
Reduced operating expenses from prior corresponding period as benefits from strategic reorganisation conducted in FY2025 continue to be realised
Cash at 31 December 2025 of US$3.4m (30 June 2025: US$22.6m).Post period end,an accelerated lump sum royalty payment of approximately US$14.1 million was received from a Tier 1 automotive customer under an existing Automotive Program Guarantee
Adjusted EBITDA loss expected to be in the range US$13.1m - $13.7m (H1 FY2025: US$17.7m)
KEY OPERATIONAL HIGHLIGHTS:
Automotive:
Market leadership reinforced, with cars on the road using Seeing Machines' Driver and Occupant Monitoring System ("DMS/OMS") technology reaching 4,818,731 units, representing 67% year-on-year growth compared to cars on road at 31 December 2024 of 2,883,745 units
Production volumes during H1 FY2026 of 1,088,530 units (H1 FY2025: 672,323) representing 62% growth with Automotive royalty revenue increasing 43% to US$9.0m (H1 FY2025 US$6.3m)
Expansion of an existing European Tier 1 and OEM automotive program, with an expected additional US$10m in initial lifetime value, supporting enhanced interior perception for semi-automated vehicle functionality, with production expected to commence in 2028
New production award in Japan with Mitsubishi Electric Mobility Corporation, alongside an advanced development project with another prominent Japanese OEM, with a formal award expected in H1 CY2026
Launch of market-ready impairment detection capability at the 45th Mothers Against Drunk Driving ("MADD") Conference in the USA, addressing non-transient impairment including alcohol, a key focus of the US regulatory roadmap
Successful debut of the Company's next-generation 3D Cabin Perception Mapping platform at CES 2026, marking a major step forward in real-time in-cabin intelligence for future mobility applications
Aftermarket:
US$1.8m Guardian order received from a leading North American autonomous vehicle operator to support expansion of its test fleet across additional US locations
Major Guardian order of 1,100 units from a US-based multinational fleet operator, with discussions underway regarding further expansion during the current calendar year
Continued collaboration with Mitsubishi Electric Automotive America, including the Company's first Guardian fleet win in the US
Formation of a dedicated Future Mobility Group to support the growing autonomous and next-generation mobility ecosystem
Working Capital and Cash Balance:
Cash balance reduced by US$19.1m during H1 FY2026 to US$3.4m. Approximately US$13.1m was related to operating performance, US$5.0m to working capital movements and US$1.0m was deferred consideration for the acquisition of Asaphus (announced on 8 July 2024). The increase in working capital was primarily driven by higher inventory levels. These are expected to unwind during H2 FY2026 as delivery commitments are met.
Outlook:
With GSR implementation imminent, automotive production volumes are expected to increase materially over the coming quarters. Seeing Machines is positioned to benefit from accelerating royalty volume, expanding recurring revenues and improved operating leverage as OEM compliance strategies move into production. The Company continues to trade in line with market expectations and is pleased with the continued recent momentum. Adjusted EBITDA is expected to be positive in Q3 and the second half of FY2026.
Paul McGlone, CEO of Seeing Machines, commented: "During the first half, we made strong progress in reshaping the business for scale as we approach a key regulatory and commercial inflection point. Looking ahead, we expect royalty revenues to accelerate as OEMs roll out their compliance strategies, alongside continued growth in Guardian connections driving higher annual recurring revenue. Our focus remains firmly on generating positive cashflow in H2 FY2026."
The Company expects to publish its unaudited H1 FY2026 Results and Directors Report in March 2026.
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